ENG 4133 Bachelor Thesis Assignment - German University of Technology in Oman
Prepare a paper about Performance.
Topic - Six sigma approach for manufacturing performance improvements.
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In the world of business, the productivity of an organization depends on the performance of the employees of that organization. The study deals with an approach that would help the organizations to improvise on their performance. The approach is called Six Sigma approach and is described as a process consisting of six principles which are implemented in order to improve the performance. The six principles are Recognize, Define, Measure, Improve, Standardize, Analyse and Integrate.
Chapter 1 INTRODUCTION
The end of 1980s was a decade when the answer to the industrial process and business management problems appears (namely six sigma). There is no doubt that many programs have been explored and evaluated before to enhance the quality and efficiency of different organizations to improve either a product or a process. Six sigma is one of the most popularprograms, it is an important approach to follow in order to develop and improve the quality and performance of an organization by resolve any industrial defect, design optimization andcost reductionwhich can be done through some strategies and techniques. Six sigma can be defined as the method of collecting data and facts to detect the cause of errors and the conditions to eliminate them. Lean and DMAIC are the common types of six sigma which could be applied into manufacturing industries or any service organization. I have highlighted the words, DMAIC, performance and defects as keywords, because they deal with the concept of six sigma. (Kwak and Anbari 2006)
Many different companies such as (Motorola, Toyota, Boeing, Toshiba and many others) considered six sigma as their reference to the improvement stage and success.(Antony and Kumar 2011).
Six sigma initiates in Motorola in the late 1980s, as they focused in the methodology of six sigma to meet the customer requirements under the appropriate conditions.Motorola achieved magnificent results and maximize their profit after implementing the six sigma approach.
Obviously, six sigma introduced the company an opportunity to grow and to become widely known.(Antony and Kumar 2011)
It also aimed to enhance the financial achievements of the company by increasing both profit and savings. Motorola and other companies were able to achieve customer's satisfaction by following six sigma approach and by taking customer requirements and market changes under consideration.(Antony and Kumar 2011)
This literature aimed to provide the reader the main standards and strategies of lean and six sigma approach, the principle of each one and how it can be applied to improve the manufacturing performance.
Some successful projectswhich implemented the six sigma will be studied in both manufacturing and service section, the challenges they faced and what actions was taken to solve this challenges will be mentioned in this literature in order to illustrate the meaning to the reader and todrive him to maximize the business success. This literature is highly aimed the employees in different sectors. I choose this topic because I believe that it is an important approach that will lead to an impressive future. (Knowles 2011)
1.4 Problem statement
The performance of any system could be effected by many different factors, which will cause some defects to the organization's efficiency which leads to loss the high level trust of the customers, therefore reducing the sales and minimizing the profit.
This literature will investigate the following points:
- The definition of six sigma
- The aim of lean and six sigma
- Standards for six sigma
- Strategies of six sigma
- How six sigma approach is applied in the manufacturing industries
Chapter 2 Overview
1. Six sigma
Six sigma is a highly preferred solution to maximize business success and to exceed zero defects, or as close as possible. It is a process that helps the organization to achieve customer needs and expectations, by focusing on improving the business profitability, quality and efficiency of both products and services with the help of the collected data and statistical analysis. This approach can easily be applied by figuring out the number of defects in a process and then identify the most appropriate way to eliminate them. Six sigma approach can be implemented in different manufacturing fields as well as functional areas such as marketing, purchasing and many others. (The roadmap to customer impact)
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1.2.1 Six sigma DMAIC
DMAIC is a closed loop task, which focuses on achieving a continuous development and to enhance productions quality and performance using five different stages (namely DMAIC cycle), each stage includes some tools and techniques. (kwak)
1. Define stage
Thefirst stage of DMAIC cycle involves data collecting process. The input and output of the project should be clearly identified in this stage, as well as the project itself. Once the project is defined, project's vision, knowledge, sponsor, objective, timescale, possible budget and potential benefits should all be clear and well introduced to the selected team members. This stage will help the company to achieve the desired project structure.
Tools and techniques
- Define customer's needs and expectations: The customer requirements should be under consideration in order to enable the improvement.
- Define a goal: The goals can be identified due to the answers of some questions. What type oflack does the company involve? How this lack can affect company's performance? What solutions could be made to cover this lack?
- Define current company's structure: The structure to be changed should be analyzed and clearly understood by the members, to enable them to focus on the lack aspects and to think about possible solutions.
- Define the structure which is favorable to accomplish: Use the previous tools data to design the optimal structure which will lead to a continuous company improvement.
- Define the opportunities by Identifying the available opportunities will help the organization to achieve customer's satisfaction and to improve cost quality. The cost of improvement approach and customer satisfaction questionnaires considered as forms of opportunity.
- Define the requirements and resources of the desired structure: This step will ease the mission to success and will contribute to build a good link between the organization and the beneficial sources, which will provide the remaining requirements.
- Define the team: Form the suitable team for the proposed project. It is necessary to ensure that the team members are trained, knowledgeable, confident and willing to achieve the estimated objectives.
- Define a plan: This step will illustrate the whole planning system, the vision and how it can be upgraded to exceed the desired action, ideas and selected activities to meet mission's target and finally the organization will rich to the value stage after the implementation is done.
- Define timing plan: The team should follow the timescale to get the required feedback from the right person, in order to progress the project and deliver it within estimated date.
2. Measure stage
In order to solve a problem, the cause of defect should be recognized, so this stage aimed to evaluate the company's performance level, defects, and to detect whether the process is stable or not using proposed measurement system.
Tools and techniques
- Select metric and measurement system: It is important to select the appropriate measurement system in order to get accurate results, for example, we can measure the rail travel safety in a country according to different metrics, the measurement can be done per passenger trip or per departure, this metrics could be argued by some, as the trains will carry different number of passengers.
- Run control charts: It is an effective procedure to check the stability of a process and to determine thefactors that will affect it.
- Sigma level: Sigma level will calculate the current process possibility to meet customer's requirements.
3. Analyze stage
This stage aimed to analyze the results from measure stage and to determine the causes of defects in order to draw cause and effect diagram which will lead to findpossible solutions to deliver value to the customer. What variations can be applied to achieve customer's expectations? The answer of this question will be revealed in this stage by establishing project's achievement key.
Tools and techniques
- Reduce the non-value add: Understanding the steps established for the project will help to identify the useful elements which will add value to the process and which will not, therefore take the right action by reducing the non-value add.
- Analyze source of variation: The analyzing process for causes of variation can be done using simple tools like brainstorming or cause and effect diagram. The most frequent causes could be determined by pareto diagram. Some developed tools like correlation plots, hypothesis testing and experiments could also be used to establish the effects and relationship.
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4. Improve stage
The process should be improved by creating and implementing solutions which will eliminate the imperfections. This stage will provide new operating conditions to the process in order to enhance the performance. Implement the new process conditions and ensure that it operates as expected, then the problems and the failure modes should be identified to refine the process as required.
Tools and techniques
- Process map: Publish new steps for the process which will deliver value to the customer
- Test: Test the new approach steps and ensure that everyone is comfortable with it. Detect the issues and the failure modes which could present.
- Performance analysis: Create stability using suitable tools such as SPC, DPMO, hypothesis testing etc. Evaluate the level of performance regarding to employee's feedbacks about the new process.
- Review and predict: Review the feedback. Determine the actions to be taken in order to improve the process. Predict the expected performance level and get buy-off from the sponsor.
- Initiate a plan for the control phase: Establish an appropriate plan to ensure the continuous improvement for the project.
5. Control stage
The confirmation is done in this stage, by documenting the new process, train the employees and provide the needed lessons about the new process. Another goal of this stage is to sustain the expected gains, to control and optimize the performance according to the changes and process fluctuations to ensure the continuous improvement.
Tools and techniques
- Flowcharts: An illustrative map or flowchart is needed in order to clarify the process.
- Run experiments: To evaluate the available solutions with wide range of population.
- Set up controls: Select the required controls and set them, in order to ensure the on-going control.
- Record the reviews: In order to understand the learning aspects keys.
1.2.2 Lean six sigma
Lean is another possible solution which leads to better organization's performance and quality, it focuses on the procedure of waste reduction in which, any step which does not provide any value to the customer or does not meet customer's satisfactions is considered as a waste.The principle of waste reduction aimed to minimize the cost and the cycle time of an organization by avoiding seven types of wastes (Overproduction, transportation, motion, inventory, waiting, defect and extra processing).
Lean and six sigma both affect the financial aspect positively and can double the savings, operates with the support of management section and both can be applied in the non-manufacturing sector.LSS is a commerce enhancement strategy that points to maximize shareholder esteem by moving forward quality, speed, client fulfillment, and costs: it accomplishes this by consolidating devices and standards from both Lean and Six Sigma.
The aim of LSS is to drive commerce prepare changes through receiving the key highlights of both Incline and Six Sigma and combining these highlights in to a coordinates approach towards commerce execution upgrade. In so doing, companies center on efficiently making esteem and decreasing and evacuating squander while utilizing Six Sigma to center on and to annihilate the Basic to Quality (CTQ) issues that influence an association. In applying this combined approach, LSS points to attain quick adaptable stream of items and administrations while efficiently killing any issues that might antagonistically influence the quality and execution of the trade prepare. Lean advancement, which points to handle process effectiveness by dispensing with non-value-adding steps and exercises in a prepare, and Six Sigma, which represses the method variety on priority by conferring the whole prepare towards cruel. Lean fabricating execution in organization makes a difference in appropriate organizing of forms and most extreme squander lessening which leads to progressed execution.
Six sigma is basically a quality control system proposed for the manufacturing industry with an objective to improve the overall production performance (chugani et al., 2017). More specifically the technique is contained in restricting the total number of defective products in the manufacturing and there by contributing to the quality assurance. Motorola in the year 1986 developed six sigma strategies in the form of a set of tools and procedures to improve the quality in its manufacturing operations. Later several other companies have absorbed this system into their manufacturing processes (Futerer,2016). Later on several organizations worked on to absorb six sigma as part of their operational strategies by the end of 20th century. Within few years of absorbing six sigma into the main stream manufacturing processes, several billions of dollars are saved by the company as per the claims they made in the annual performance reports.
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The roots of well spread acceptance of Six sigma for manufacturing operations consists in the fact, that routine six sigma application increases the quality of the products as well will work for decreasing the overall cost of the production. Routinely speaking the cost of manufacturing will increase along with the quality improvement of the products; however employing six sigma will work on to increase the quality of the product along with the reduction in the production cost. The key steps in the implementation of the six sigma process in the organizations is contained in the application of the measurement, working for the analysis, improving the process and subsequent control for ensuring the quality in the organizational products.
The ultimate goal of the six sigma strategy contained in restricting the defects in the production like to about 3.4 for million products. Though the principle is much simpler, the application of the six sigma for specific manufacturing applications needs expertise and certification. There are different levels of six sigma expertise and a professional with highest certification can able to implement the right controls and can contribute to the better performance of the organization. The following part of the discussion is about the six sigma strategies as applied for specific organizations like agriculture, Automotive and Electronics and Semiconductors. Detailed evaluation of each of these organizations and their application is discussed in detail in the following part.
2.2 Types of manufacturing systems
2.2.1 Agriculture industry
Agriculture is very broad industry and has several regions and its operations range several specific applications. Right from cultivation of the crops and the plants, breeding animals(Powell et al.,2017), animal development for meat, fungi and other different forms of fibrous and non-fibrous material growth all fall in the category of agricultural domain. Even the making of bio-fuel which can be applied for the operations of the machinery fall in the category of agriculture.
The key problems of the industry
The key problems of the industry are contained in excessive returns and damages. Logistics costs included in the product recalls. Further the loss of trust, lack of customer satisfaction; reduced profit margins are some of the concerns of the agriculture industry at present.
Application of the six sigma for Agriculture industry
The following part of the discussion is all about the application of the six sigma for improving the quality of the agriculture in general (Sreedharan & Raju, 2016). Developing quality in agricultural domain can have inferences to several other closely related industries like food processing industries based on agricultural products, industries working for procuring and processing the agricultural products Etc.
Since the application of the domain is very broad, consideration to upgrade the quality of the domain is also very broad and there are several frontier applications where agricultural industry is finding applications in. Some of the key concerns in application of the six sigma technology to the agricultural industry contained in boosting the quality of the products from agriculture as well working for reduction of the wastage in the agricultural production. This integrated approach will curtail the cost of the production form agricultural industry considerably (Khan et al., 2018).
An application of the six sigma strategy can have implications to several stakeholders of the agricultural industry (Pristavka et al., 2016); however the notable benefits of the strategy will be mainly for the farmers in the organization. The key application of the strategy is contained in promoting the higher profitability and returns to the investors.
Final end-users can get more satisfaction as well as the strategy is going to do value addition to the products. The number of defective products from the agriculture domain will get seriously reduced by employing the six sigma strategies in the industry.
Apart from that when six sigma strategies are applied to the agricultural operations, there will be reduction in the recalls and product returns (Dora et al, 2015), which can contribute to the reduction in the overall logistics prices in the industry.
Focus areas of the application include continuous monitoring of the quality in the production process employed for agricultural operations, Further there it is going to have continuous monitoring of the quality through comprehensive monitoring tools. Analytical evaluation of the quality of the processes and enforcing strategies to upgrade quality to the maximum possible levels is the inherent strategy contained in six sigma approach as applied to the agricultural industry.
Principally application of the six sigma for agricultural domain is contained in evaluation of the processes and procedures from customer centric approach (Hutchins, 2016). There is much to do with the actual orientation of the existing processes and the procedures in aligning with the final customer expectations. Measuring the achievements by these close controlled and monitored processes and working for the betterment of the quality standards to the standards expected by the customers and beyond that makes up the key element. Further, working for the cost reduction, improving the overall process time and other resource utilization etc makes up valuable contribution of Six sigma strategy to the industry. Finally when all such measures are applied decently the end results of the strategy will be the best and the industry can get maximum benefits from the application of the six sigma to agriculture industry.
Statistical predictable and repetitive processes as applied in the agricultural industry will make sure that the defects in the agricultural industry production get reduced and the overall quality of the final products be improved. Customer expectations and satisfaction will be improved both by the fall in the overall prices of the products as well by improving the quality of the products as well.
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2.2.2 Automotive industry
Automotive industry is one of the booming industries of the recent years. There is extensive production of the automotive in the recent years. Recent developments in the automotive industry resulted in more concern towards the quality and reliance. Remarkable investments in the manufacturing and the R&D of the industry marked the current industry scenario.
Increased competition, no profit without quality and cutting edge technology inclusion, High demand for low cost alternatives makes up the key problems of the organization. There is need to improve the yield while reducing the cost of production without compromising the quality of the final products (Sharma et al., 2018).
Six sigma application to the automotive Industry
Automotive industry core functionality is the manufacturing of the vehicles for the needs of the society. When automotive industry is developing right number of products for the society applications, the cost of the production, quality of the products, the type of features available, reliability and the working life of the products are some of the several characteristics that do define the overall attractiveness of the industry and will decide the customer satisfaction too (Gupta et al., 2018).
Some of the key attributes of the final products like reliability in the functionality, improving customer satisfaction can be enabled by using means like six sigma and there by working for improving the overall versatility of the product. In other words by curtailing the defective products and other mediocre products not upto the quality expectations of the customers, it is possible to meet more customer expectations. Six sigma strategies will perfectly meet these expectations.
Six sigma approach or Taguchi approach can be applied for automotive industry and subsequently the quality of the products can be boosted considerable.
The key implications of the application of the six sigma strategies for automotive industry can results in the increase in the customer satisfaction, increase in the overall market share, and increase in the profitability as well. Finally six sigma applications to the automotive industry can bring out drastic changes in the organizational profile and working scenarios. Though six sigma can be achieved on short term, on long run the principally it can be considered to be as 4.5 +1.5 sigma shift from the central line of the production quality. Application of the six sigma in automotive industry has several regions. Notable of them are the business processes, right from the key manufacturing processes, there are several supportive process that can contribute to the increase in the quality of the products in the automotive industry (Suresh et al.,2016).
Focus areas for six sigma strategy application
Six sigma applications to the automotive industry core processes can ensure that the quality of the processes and the final products is augmented so that the defects will not cross the 3.4DPMO levels. Six sigma can be employed to define the framework of operations in the system. The customer voice can be heard in the system and will enable the requirements of the customers and the project goals are represented and achieved in the manufacturing processes.
In unique approach towards the automotive industry quality management, six sigma will work on to measure the key aspects of the system; will work on to collect the relevant data from the system. It will also work for the collection of the relevant data and to evaluate the as-is capabilities of the processes. Statistical data collection and evaluation will work on to provide key insights into the actual process capabilities in yielding the quality outcomes. Optimization of the existing processes, working for the betterment of the existing business processes will enable better quality outcomes for the processes.
The key element of the process execution is the determination of the root cause of the defect by comprehensive data analysis of the defects in the system in the form of deliverables. Some of the tools and strategies that can be employed in the process consists of the design of experiments to collect the data, poka yoke or mistake proof reading of the data findings in the process, Working out standard work to create a new, future state processes etc.
Also the as -is capabilities evaluated In the current process findings can be cross verified employing the pilot runs and the findings will be employed as basis for rectification of the processes further.
Statistical quality control of the processes, production boards application, visual workplace development and process monitoring are some of the several strategies that need to be applied in the current six sigma strategies for the manufacturing performance improvement.
DMAIC and DMADV are two popular strategies of Six sigma applicable for the current scenario(Surange,2015). Define, Measure, Analyze, Design and Verify are the core strategies of this process (DMADV). Define, Measure, Analyze, Improve and control are the core strategies of (DMAIC) method of quality control.
As indicated in the findings of the case study done at Maruthi Suzuki, one of the leading automobile organizations, Six sigma worked on to enhance the productivity of the operations in the organization. Six sigma strategies enabled the improvement of the productivity as well worked for the improving the resources wastage reduction as well.
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The process is extended to the tier 1 and tier 2 vendors of the organization and found to further contribute to strengthen the quality standards of the components generated in the organization. Further the key domains like training, audit, implementation and the up-gradation of the organizational competent domains found to enhance the overall outcomes from these organizations (Murumkar et al.,2018).
Maruthi strategy is recognized as lean manufacturing system with inherent emphasis on minimization of the waste generation in the manufacturing process. About 80% reduction of the rejections is experienced by Maruthi after implementing the strategy further the defect reduction is found to increase by about 75%.
All the processes in the automobile sectors will come under the microscopic evaluation measures of six sigma strategy. The strategy will check the functionality of the process for manufacturing, support services and the plant support services as well. The inherent strategies applicable for quality improvement in the organization and in the supplier organization do consist of,
Process mapping and critical evaluation of the causes of the defects.
Cause and effect analysis in the process
Failure mode and effect analysis process
Skill enhancement for process improvement and the quality of the product improvement.
Working for pre-emptive and predictive corrective measures in the system based on statistical observations and analysis.
Implementing the process in the automotive sector can be enabled with all these well-defined processes and steps. However the most important aspect of the entire exercise is to sustain the modifications and the proposed improvements to the processes. It is required that all the processed implemented in the plant need to be ensured of continuation of the same at the defined performance metrics and at the defined organizational effectiveness. For this need, the performance metrics of the plant operations need to be continuously monitored (Naveen et al., 2018) and corrective actions need to be taken whenever necessary to make sure that the performance of the organization will be in line with the expectations of quality.
Hence the important observations are
- Strategy is practicable
- Easily deployable
- Systematic evaluation and process rectification need to be followed
- Track the developments and observe the trends in the process.
- Establish and monitor the Key metrics
- Control to sustain
2.2.3 Electronics and semi-conductor industry
Electronics and semi-conductor industry is characterized by production of diverse products on large scale volume in general. Applications of the devices from these industries ranges from domestic applications, industrial applications, defense, classified special purpose applications etc. The growth rate of this industry is too high in the recent years and there is much attention being paid towards this industry in particular in recent years. The most important part of the electronics and semi-conductor industry is up keeping the quality of the products in accordance with the customer requirements.
The key problems of the industry contained in quality problems. If the quality of the products is not as per expectations it is very difficult for the organizations to sustain as there is too much competition prevailing in the industry at present. Further there is much to do with the organization.
Process capability improvement and capacity optimization make up important aspects of the six sigma strategies.
Process capability improvement that too in the volumes as per the quality standards of the market is the key problem. Since in the most of the cases the state of art manufacturing techniques is employed are not actually evaluated for the scope of improvement.
Lack of professional expertise in implementing corrective measures and lack of awareness in systematic procedures in another important drawback in the industry particularly in emerging economies.
Potential of six sigma strategy to augment quality in this organization.
Electronics and semi-conductor industry growth rate has increased too heavily in the recent years. It is one of the product quality oriented industry. Electronics and semi-conductor industry reputation and customer satisfaction do depend on the product quality intensely. Any sort of failure in the quality compliance of these products will immediately reflect in terms of the failure of customer patronage. There are numerous organizations from electronics and semi-conductor industry successfully deployed and using six sigma strategies. The Early pioneers include Texas instruments (Balasubramanian et al.,2015), IBM solutions, Sun Micro systems etc. Six sigma in semi-conductor and electronics industry will be focused on to evaluate the data obtained in the manufacturing process and the findings of these data based analytics can be used for the organizational sustenance (Hassan,2016).
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Six Sigma application and Focus areas
The focus areas of six sigma in this industry will include the following,
Quality critical to the customer- What the customer expects from the organization in terms of the quality is the most important aspects of the six sigma in this industry, reducing the defects - Eliminating the features which are not expected by the end user as well in the end product, Establishing the improved process capabilities to generate product qualities and the product volume in accordance with the best possible performance standards, reducing the variation and improving the reliance on the production and production quality, enabling stable operations and the generating persistent, predictable processes for the organizational needs and Sustaining and continuation by strict control measures.
For electronics and semiconductor industry, DMAIC as well as DMADV strategies can be applied conveniently.
Six sigma and lean six sigma strategies can be made applicable for the electronics and semi-conductor industry.
When the first strategy is contained in improving the quality standards and the quality attributes of the final products and the processes.
The second strategy is contained in reducing the overall wastage from the process. The total number of waste components from the production lines will be eliminated by improving the quality of the products generated in the process. This strategy in turn will work on to contribute to the reduction in the overall cost of the products as well will work for the betterment of the quality and efficiency of the final processes in the manufacturing operations.
There are several successful instances reported in literature, stating the advantages in the application of the six sigma strategies for electronics and semi-conductor industry.
In semi-conductor wafer fabrication industry the application of the six sigma strategies results in betterment of the yields.
Prashant Reddy(2018) indicated that the wafer manufacturing company is yield is reported to have increased several times by employing range of strategies like Factorial design of experiments(DOE), Employing Root cause Analysis, Cpk improvement opportunities as well as by employing right process tools for manufacturing process improvement(Kasemsap,2018).
Global foundries FAB is the organization, subjected to lean six sigma applications and the results included drastic quality and manufacturing volume improvement and the strategies are extensively supported by the management of the organization by providing with extensive support and drive and buy-in development for the business concerns. The advantages experienced by integration and application of the six sigma and the lean six sigma in the organizations included with making the organization data driven, working for speeding up the cycle time in the organizations, also it is contained in empowering the employees for the organization. SPC, Quality control charts, TQM, Process management strategies and protocols are some of the strategies employed in the semiconductor industry for improving the quality standards and the product outcome volumes (Sharma,2017).
The key feature of the applicability is that the tool is not just limited to the application in the manufacturing main stream applications; rather it is also applicable for the service operational streams in the organization as well. Six sigma application can be extended for the entire supply chain of operations. The supplier network also has subjected to extensive improvement of the material used in the process lines, enabled improvement of the product volumes, worked for the improvement of the cycle times and overall reliability(Yadav & Desai,2016).
2.2.4 Petroleum industry
The top oil producing countries, such as (United States, Saudi Arabia and Russia) may face a recession which could be caused by the decline in crude oil prices worldwide, which is a beneficial impact for the clients and catastrophic for the oil producing countries. The decline of oil prices will resulta dramatically decrease in the expected export revenues of these exporting countries, therefore affect their income negatively. Oil demand is increasing continuously, while the oil supplied by the organization of the oil producing countries is lower than the demand.
Petroleum industries may face a recession, which is a problem that can start in one country and then get spread worldwide. This problem will highly affect the oil exporting countries. Therefore, the lean six sigma can be applied to these countries as a survival solution during the period of recession in the economy.
Leansix sigma guidelinesfor oil producing countries.
Lean strategies focuses on the eliminationof wastes that could cause an economic recession, therefore it can be applied to accelerate the economic growth in the countries which face recession, as well as quality depressions.
To insure a continuous and steady success, control charts can be used to evaluate the performance, control stages and phases of change and improvements. This countries can use an error validation technique called Poka-Yoka, which works on the principle of "prevention" is better than "detection", this means that those countries should avoid the undesired results instead of controlling the causal factors. The strategies of design for six sigma (DFSS) can also be applied to achieve client's requirements and to enhance the design of processes. DFSS should be classified upon effort's size
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Performance management can be referred to as the interaction between an employer and an employee which takes place over the year for attaining predetermined organisational objectives. The communication process involves clarifying their employees with objectives, identifying goals, obtaining feedback and providing a review of the results. An organisation is required to conduct performance management of its employees on a regular basis and is required to provide them with several benefits for keeping them motivated. This study will shed its light on standards of evaluating the performance of a system which includes finance, customer service, administration, production and logistics. In addition to that, various techniques will be discussed for improving the system.
3.2 Systems of performance
3.2.1 Hardware resource
Several multinational organisations like Morrison's make use of information technology for gaining a competitive advantage over their rivals within the market for linking their organisation to distribution channels, suppliers or customers. In accordance to Distelhorst et al. (2016), these systems use processing or information capabilities in organisation for enhancing the performance of their employees. Minimising costs involved in capturing and using information has been working in collaboration with enhanced competitive pressures.
3.2.2 Software resource
Performance management software tool is used by employers of an organisation to establish expectations and job profiles of their employees, creating objectives which align with organisational goals and mission, creating appraisals and performance of documents.
As opined by Castka and Corbett (2015), software of performance management allows managers to enhance engagement of employees through recognition, transparency and feedback.
A manager is able to evaluate how the performance of its employees are aligned with organisational objectives, mission and business goals.
The current market size for performance management software is not certain and it has been estimated that it currently values around $5 billion. The growth rate has been predicted approximately around 17 percent. The research conducted by Deloitte presented that, approximately 67 per cent of organisations have been adopting PMS in 2015 as a replacement of current solutions. Performance management software tool is used by employers of an organisation to establish expectations and job profiles of their employees, creating objectives which align with organisational goals and mission, creating appraisals and performance of documents. As opined by Castka and Corbett (2015), software of performance management allows managers to enhance engagement of employees through recognition, transparency and feedback. A manager is able to evaluate how the performance of its employees are aligned with organisational objectives, mission and business goals. The current market size for performance management software is not certain and it has been estimated that it currently values around $5 billion. The growth rate has been predicted approximately around 17 percent. The research conducted by Deloitte presented that, approximately 67 per cent of organisations have been adopting PMS in 2015 as a replacement of current solutions.
3.2.3 Human resource
One of the major responsibilities of a Human Resource manager is to design the process of performance appraisal and ensures that the process is simple and does not takes too much time. As opined by Montabon et al. (2018), the HR manager is needed to be aware of the responsibilities which are assigned to their employees and establish a system through which their overall performance can be evaluated. It is essential for an HR manager to engage in communication with every department within an organisation so that they are aware of each and every tasks which are assigned to the employees. The performance management system for Morrison's is a tool which enables its Human Resource manager to focus on their employees as well as the overall organization. The company believes that it is essential to have a world-class system of performance management and is effective when its managers encompass it.
3.3 Standards for evaluating the performance of a system
Administration standards serve as a starting point for the success of an organisation. These standards provide employees in understanding basic rules existing within an organisation. The Human resource department is responsible for designing these procedures and policies and enforcing them to their employees by providing a handbook to them.
A financial standard can be defined as a set of standards, procedures and principles which serves as a base for financial accounting practices and policies. These standards enhance the transparency of financial reporting in major nations in the world. In accordance to Combs et al. (2019), in the United Kingdom Accounting Principles forms a set of standards for finance which are adapted by a wide range of companies for preparing financial statements. Multinational companies like Tesco follow these standards for reporting financial standards.
3.3.3 Customer Service
Customer service standards are a set of guidelines and framework within an organisation which shapes and informs the relationship a customer with their business during every step of the customer experience. In accordance to Barafort et al. (2017), several multinational companies like PwC adopts these standards for empowering employees of customer service for addressing the issues, complaints and questions which faced by customers while using their services. By setting strong customer service standards, an organisation is able to train more efficient employees who are able to provide a quality experience to their customers and in turn maximising their profits.
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Production standards can be referred as a benchmark which are utilised by organisations for measuring their overall production. In accordance to Al-Haylay and Alnajjar (2016), Production standards are set for the production process, raw materials, tools and equipment, quantity and quality of output and speed of work. These standards are generally expressed in quantitative terms that is in terms of overall output, units of time and plant capacity. A production standard provides guidance and direction to the organisational production department. This suggests that attained production can be compared with set production standards and in turn, difference can be identified and corrected. Morrison's makes use of these production standards as a point of reference for identifying whether the operations are performed in accordance to the plan.
Inspections of quality processes are an important aspect of quality control in manufacturing. Inspections within manufacturing involve examining, measuring, testing or gauging the major characteristics of a product or a procedure and then comparing the obtained results with set requirements. As highlighted by Montabon et al. (2018), an organisation like Morrison's has set standards for inspection and carries out the process on a regular basis for understanding any flaws within their operations.
As a retailer, manufacturer or provider of logistics services, it is essential for them to be aware of the location from where their goods arrive and the time when they are to arrive. It is essential for an organisation to be aware of the movement of goods and creating digital business processes. As opined by Barafort et al. (2017), this will lead to enhancement of relationship organisations with stakeholders as well as creates a highly sustainable, collaborative and efficient logistics environment. Morisson's has been committed towards attaining real time visibility, fully accurate throughout their entire supply chain irrespective of its mode of transport.
3.4 Purpose of evaluating the performance
As per raising the success of project work it is most important for having effective planning for raising the growth rate. However, evaluation of performance in Morisson's offers good scope for understanding success or failure in details. John Bernardin et al. (2016) commented that identification of the major influence of performance based on a certain measure is essential for overcoming critical measure.Identification of major challenges in a highly competitive market can be one of the major supports for any organization for the formulation of effective planning in a highly competitive market.
Adoption of the right strategic planning can be essential towards meeting the requirement of work. There are many indicators were utilized for the identification of performance level of Morisson's business work.
In the current changing environment, it is essential for having effective planning and coordination towards meeting the overall growth of the business. Evaluation of performance is the most important task in perspective of the generation of good strategic planning in relation to making support for the growth of the business. Identification of major challenges in a highly competitive market there is effective planning towards a level of operation.These types of activities were effective in order to make overall growth of the organization for meeting each requirement of the project based on the analysis. Handfield et al. (2015) mention that, the advancement of work depends on the performance level of work in relation to growth and progress of business in certain activities related to the generation of advanced marketing planning as well as a way for reducing financial risk in the market. Most of the business organizations were effective for measuring performance level.
3.3 Techniques to improve a system
3.3.1 Initiate Project
Initiation of a project in business is mandatory to have effective planning in perspective of work for overcoming critical challenges in order to overcome the situation in Morisson's. Marketing planning and management of business performance in current days are depending on how well strategies were applied in the corporate sector towards achieving organizational goals. Reaching the desired goal in any organization or field it is necessary for initiation of the project on time. Based on the initiation planning different types of necessary requirement were identified.
3.3.2 Define requirements
In relation to raising performance level based on the implication of the development of the system, it is necessary for having effective strategic planning based on the requirement of the system.
According to the viewpoint of Bititci et al. (2016) benefits of these types of activities in relation to the adoption of is a better tool and tetchiness for running systems in a better way.
However, proper identification of major challenges in the highly aggressive market-defining requirement of the system is essential for overcoming any critical issues while initiation of the project.
Handfield et al. (2015) stated that it is essential towards meeting the demand for work related to the generation of advanced revenue as well as effective planning towards overcoming the basic challenges of Morisson's.
3.3.3 Develop concept
As per requirement of performance in market related to Morrison operational activates development has effective contribution. However, due to proper development concepts implication in this company can be essential towards meeting requirement of work in a scientific process (John Bernardin et al. 2016). In perception of highly aggressive competitive market it is effective for having proper growth and development concept in a scientific process. Recognisation of major challenges in highly rivalry market is essential for gaining competitive advantages in retail sector .adoption of upgraded tools and techniques were effective towards meeting requirement of organization for raising their revenue growth in market.
Morison's company facing challenges due to raising different issues in market due to rising different types of pressure on organisation for meeting desired results. However, it is necessary for this organisation for developing their existing marketing concepts with support of advanced technology (Kasabov et al. 2016).
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3.3.4 Optimize a system
As per requirement of performances level, it is essential for the optimization of systems. These types of activates were effective in meeting the overall progress of business in a scientific manner.
Handfield et al. (2015) commented that there are many opportunities in a highly competitive market advanced system application were essential in order to make accurate support towards a generation of supportive activities. The performance level of business or employee increases in long term by adoptions of right systems for handling different level of operational activities. John Bernardin et al. (2016) stated that lack of optimization of systems in the corporate sector can lead to a decline in operational work towards meeting requirement of work in the scientific process.
Various types of verification are necessary for performances evaluation for understanding the success and failure process. These types of practices implication are essential in order to make a proper understanding of the progress of work and the adoption of the strategy in Morisson's. These types of practices are most important for the further requirement of any type of work towards meeting the demand of work for changes in strategies or selection of a strategy for the long run. Richards et al. (2019) commented that verification of these types of work were essential in perspective for a generation of support towards the success of any project by the adoption of right strategic planning.
Performance management is of excellent concept which requires attention towards meeting requirements of work based on success or failure. It is generally done for getting better results in order to reduce the burden of business and raising scope for development opportunities. Thus, evaluation of performance in terms of identifications of major issues in way of success is essential towards the management of business work. Therefore, it is mandatory for corporate or any other organizations for the adoption of right strategy related to the success of the organization towards meeting customer demand.
There are many opportunities which were crucial meeting demand of the customer as well as the development of project management work. Different types of evaluation process implementation in an organization are essential towards meeting the requirements of a business in a systematic approach.
Based on evaluation results it is essential to have appropriate actions measures to ensure higher quality performance. In the perception of project work evaluation of work based on long-run performance, analysis can be supported to achieve desired results of Morisson's.
Chapter 3 Result and discussion
Question 1: What are the measure were required for improvement of present situation in this company?
As per opinion of operation manager, this company's operational activities cover a vast area and therefore, strong marketing approaches are necessary.
According to finance manager of this company there are many opportunities for this organization which requires higher level of budget allocation and cost controlling measures. Implication of Six Sigma approaches is necessary towards establishment of work in relation to overcoming challenges in market.
As per opinion of sales manager of this company it is essential for having proper planning and coordination towards meeting requirement of work related issues to generation of higher income related to making overall progress in a competitive world.
Table 1: Interview of manager
According to the table1 analysis, on interviewing the different managers of Maruti Suzuki Company it was found that the company required high end management approaches so as to attain a sustainable growth in the market. However, according to the finance manager application of the Six Sigma Approach was required to overcome the challenges faced by the company. On the other hand, the other two managers focus on coordination, planning of marketing approaches in order to generate high profits.
Question 2: What are the benefits of Six Sigma approaches in this company?
According to operation manager, operational activities of this organization becoming advanced and reduces operational cost expenses than previous performance level.
As per opinion of finance manager of this company allegation of Six Sigma approaches provided support for overcoming challenges in market and raising their financial performance.
According to viewpoint of sales manager of this company planning and coordination process of this organization becomes effective towards meeting requirement of customer and offering better quality of work. Impact of this implication sales volume of these company raises 10% additional which has effective contribution for growth of business in highly competitive world.
Table 2: Interview of manager
According to table 2, the views of the different management of the company provided their concern for the Six Sigma Approach in a positive manner. On implementation of the Six Sigma Approach the operational activities of the organization has become advanced and the expense is reduced. Further, it has also helped in overcoming with the challenges faced by the company in the market. Moreover, the implication of this approach has led to an increase in the volume of sales by 10%.
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